ALEXANDRIA, Va. – NCUA yesterday said it approved the mergers of more ailing credit unions – in many cases allowing large credit unions to expand their footprints.
Increasing numbers of credit unions that have either stagnant or negative growth, or have reported losses in recent periods, are being merged out, with many of them ending up as part of the largest credit unions.
NCUA approved: $7 billion The Golden 1 CU’s acquisition of Church Co-op CU, a $6 million Sacramento credit union that has had negative asset growth and lost $10,214 in the first quarter; $1.7 billion Tinker FCU to acquire tiny Cushing FCU, which has had non-growth; $1.2 billion Service CU to acquire Salmon Falls Community FCU, a $13 million credit union in nearby Somersworth, N.H., which lost $35,832 in the fourth quarter; $2 billion Ent FCU to acquire USAlliance CU, a Denver credit union that lost $7.7 million in 2007 and $236,680 in the first quarter; and, First Future CU to merge with California Coast CU, which lost $485,486 in the first quarter – creating a San Diego giant with almost $2 billion in assets.
Also: Sharon CU, Sharon, Mass., was cleared to acquire North Attleboro FCU, a $17 million credit union which lost $66,070 last year; Entertainment Industries FCU, in New York, was allowed to acquire Associated Press FCU, which lost both assets and net income in the first quarter; and, Heartland FCU, in Springfield, Ill., was cleared to acquire Life CU, a $3.5 million Marion, Ill., credit union that reported an $18,000 loss for the first quarter.
